As the world’s largest automaker transitions to the electric-vehicle era, it has a warning for the industry: It’s time to fundamentally rethink traditional manufacturing.
Toyota Motor just recently unveiled its new game plan under incoming Chief Executive Officer Koji Sato, laying out several changes across the enormous business as it pushes harder toward electrification. The company will reshuffle senior executives, rejig its management structure (notably, all-male) and focus on electrification and intelligent cars.
Sato introduced the plan with a bold statement: "We must drastically change the way we do business, from manufacturing to sales and service.” To deliver EVs people want to drive, the company "must streamline the structure of the car,” he said, adding that Lexus — the luxury brand that he led — will spearhead the transformation. As part of this, the firm will restructure its vehicle production system at Kyushu and have a next-generation Lexus EV by 2026. All components in these models, "from the battery and platform to how a car is built,” will be geared for EVs.